LEXINGTON, Ky. — Wallace Wilkinson started a used-textbook business as a teen, built it into an empire and rode his fortune into the Kentucky governorship. Now, the empire is crumbling. Wallace's Bookstores Inc. operated 91 stores on 60 campuses. Now, beset by cash and supplier problems, the company is being liquidated.

        Mr. Wilkinson, 59, stepped down as chairman in February and has filed for personal bankruptcy.

Wilkinson

        Many schools had canceled their contracts before the liquidation. Others have been searching for new suppliers as summer terms are about to begin. Mr. Wilkinson's attorney, Robert J. Brown of Lexington, says the former governor was to some extent a casualty of the dot-com crash, which followed his startup of an online bookstore.

        Mr. Wilkinson's travails stand in stark contrast to his debut in 1987 as a fresh face, a self-made millionaire who grew up in one of Kentucky's smallest counties and dropped out of college. But his often-confrontational style led lawmakers to refuse his request for a constitutional amendment to let him run for re-election.

        After leaving office in 1991, Mr. Wilkinson mostly dropped from sight. That changed in February, when 10 creditors, some of them longtime business or political associates, tried to force him into involuntary bankruptcy and have his companies seized.

        Mr. Wilkinson staved them off by filing for Chapter 11 protection. The bookstore company went into bankruptcy Feb. 28, and the judge authorized the start of liquidation April 19. The bankruptcy judge ordered Mr. Wilkinson off the payroll last week.

        Mr. Wilkinson, who was earning $250,000 a year as chairman, also has filed for protection against creditors who loaned him more than $300 million.

        The bankruptcy has shocked some who know Mr. Wilkinson and his fighter's instinct during his political days.

        “I don't know anything about his business — I don't want to know — but knowing him, I have confidence that things are going to work out,” said David McAnelly, who was chief of staff.

        In bankruptcy court records, Mr. Wilkinson listed liabilities of $418 million against assets of about $87 million.

Comair kills weekend deal
Delta gets new day-to-day boss
Bush waits to reform Social Security
Building a Zaring legacy
Land for garage to cost $2M
Liquid Oxydol aimed at Gen X
Big 1st-quarter turnaround at Duramed
Ex-governor goes from best of times to worst
Business Digest
Industry notes: Marketing and advertising
Morning Memo
Tristate Business Summary
What's the Buzz?